The RBA’s kept the cash rate on hold at 10 basis points since the 4th of November 2020. Since then, we have seen many banks and other lenders offer very attractive variable and fixed interest rates. The mortgage market has many attractive offers, although some of them have certain conditions that you need to understand.
Economists View
Moving forward, many economists believe rates will rise in November 2022. However, there are mixed views from various economists of whether the RBA will keep rates on their current lows. This will depend on many factors including economic growth, unemployment rates and the outlook on inflation.
With this in mind, it is possible that the bottom of the rate cycle may soon be behind us. Luckily not soon enough. As such, now really is the perfect time to review your current financial situation.
Whether you’ve been in your mortgage for a few months or a few years, the start of a new year is always the ideal time to compare lenders and investigate what deals are available.
With some lenders offering fixed rates as low as 1.88 4% p.a., you may find that now is an appropriate time to fix part or all of your mortgage.
I’m proud to be helping as many of our clients achieve the financial outcomes they set themselves to achieve.
Jenny Shao,
A fixed rate helps in avoiding any future rate rises. It also provides you with some surety around your regular mortgage repayments.
Over the past few months, we’ve seen an increase in the number of people locking into a fixed mortgage rate. This comes as no surprise due to rates being at their historic lowest.
The decision on whether to fix your mortgage rate or keep it as variable depends on multiple considerations. We are happy to chat with you regarding your circumstances and to explain the pros and cons of a fixed rate.